Project Details
Project
UOB Sustainable Bond Framework Second-Party Opinion
Client
United Overseas Bank Limited
Project Type
Sustainability Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Green buildings; Clean transport; Energy efficiency; Water/waste water management; Climate change adaptation; Natural resources/land use management; Pollution prevention and control; Sustainable forestry; Access to essential services; Affordable housing; Employment generation and Socio-economic empowerment; Food security;
Location
Singapore
Evaluation Date
Mar 2021
Evaluation Summary
Sustainalytics is of the opinion that the United Overseas Bank, Limited (“UOB” or “the Bank”) Sustainable Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles (GBP) 2018, Social Bond Principles (SBP) 2020, Sustainability Bond Guidelines (SBG) 2018, ASEAN Social Bond Standards (ASEAN SBS) 2018, ASEAN Green Bond Standard (ASEAN GBS) 2018, and ASEAN Sustainability Bond Standards 2018 (ASEAN SUS). This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds are aligned with those recognized by the GBP, SBP, SBG, ASEAN SBS, ASEAN GBS, and ASEAN SUS. Sustainalytics considers that the eligible categories will lead to positive environmental and social impacts and advance the UN Sustainable Development Goals, specifically SDG 1, 3, 4, 6, 7, 8, 9, 11, 12, 13, 14 and 15.
PROJECT EVALUATION/SELECTION
UOB’s project evaluation and selection will be conducted by its business units and a working group (the “Working Group”) within UOB’s Environmental Sustainable Governance Committee. The eligible assets will be initially selected by the business units, and approved by the Working Group. This is in line with market practice.
MANAGEMENT OF PROCEEDS
The processes for management of proceeds is handled by the Working Group using a portfolio approach. Use of proceeds will be tracked by a register using internal accounting and information systems. If the assets are repaid or divested, they will be removed from the portfolio and replaced as soon as practically feasible. Pending full allocation, unallocated proceeds will be invested in line with UOB’s liquidity management policy. This is in line with market practice.
REPORTING
Until maturity of the Green, Social or Sustainability bond, UOB intends to report on allocation and impact of financing on its website on an annual basis. Allocation reporting will include (amongst others) total amount of eligible assets, share of new financing and refinancing, and balance of unallocated proceeds. Additionally, UOB is committed to reporting on relevant quantitative and qualitative impact where feasible. This is in line with market practice.